Interest Subvention on Rupee Export Credit Extended for UCBs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/157 · issued 16 Sep 2009 · ~1 min read
Quick answerRBI extends 2% interest subvention on rupee export credit for Scheduled UCBs with AD Category I licences for six more months, from Oct 1, 2009 to Mar 31, 2010, on same terms.
What changed
The earlier interest subvention of 2% on rupee export credit, applicable from June 1, 2009 to September 30, 2009, has been extended for an additional six months. The new period runs from October 1, 2009 to March 31, 2010, covering the same specified export sectors and conditions.
What it means for you
Scheduled Urban Co-operative Banks holding AD Category I licences can continue offering concessional export credit at 2% below the normal rate for another six months. This supports export sector borrowers by reducing their financing costs, and banks must ensure compliance with the directive's terms to avail the subvention.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your lending systems to apply the 2% subvention on rupee export credit for the period October 1, 2009 to March 31, 2010.
Verify that only eligible export sectors as specified in the earlier circular receive the concessional rate.
Maintain documentation to demonstrate compliance with the directive's terms and conditions.
Communicate the extension to your export credit customers and relevant branches.
Who it affects
Scheduled Urban Co-operative Banks holding AD Category I licences, Export sector borrowers availing rupee export credit from these banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 08:41 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which banks are covered by this circular?
Only Scheduled Urban Co-operative Banks that hold an AD Category I licence are eligible to offer the interest subvention on rupee export credit.
What is the new validity period for the subvention?
The 2% interest subvention is extended from October 1, 2009 to March 31, 2010, a total of six months.
Are the terms and conditions changed from the previous circular?
No, the subvention is extended on the same terms and conditions as specified in the earlier circular dated June 18, 2009.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/157
Ref.: UBD.CO.BPD.Cir. No. 1/13.05.000/2009-10
September 16, 2009
Chief Executive Officer
Scheduled Urban Co-operative Banks
(holding AD Category I licences)
Dear Sir/ Madam,
Rupee Export Credit Interest Rates
Please refer to our circular UBD.PCB.Cir. No. 3/13.05.000/2008-09 dated June 18, 2009 on the captioned subject regarding extension of interest subvention of 2 percentage points w.e.f. June 1, 2009 till September 30, 2009 on rupee export credit extended by Scheduled UCBs holding AD category I licences, to certain specified categories of export sector.
2. It has been decided to extend the interest subvention of 2% on rupee export credit for a further period of six months i.e. from October 1, 2009 till March 31, 2010 to the same sectors and on the same terms and conditions.
3. A directive UBD.BPD.DIR.No. 1/13.05.000/2009-10 dated September 10, 2009 issued in this regard is enclosed.
Yours faithfully,
(A. K. Khound)
Chief General Manager-in-Charge
Encl.: As above
UBD.BPD.Dir(Exp). No. 1/ 13.05.000/2009-10
September 10, 2009
Interest Rate on Rupee Export Credit
In exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest to do so, in continuation of directive UBD.BPD.Dir.(Exp) No. 1/ 13.05.000/2008-09 dated June 11, 2009 hereby directs that interest subvention on export credit may be continued for a further period of six months i.e. from October 1, 2009 to March 31, 2010 to the same sectors and on the same terms and conditions.
(V. K. Sharma)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/157 · issued 16 Sep 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5272&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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